Bulls make a comeback

Nifty50: 17,743 ▲ 119 (+0.6%)
Sensex: 60,056 ▲ 401 (+0.6%)

Namaste, friends!

One section or part of the global economy seems to be immune to the high inflation and economic uncertainties. It’s the luxury goods market! The parent company of Louis Vuitton, LVMH, reported robust double digit sales growth in the March quarter. Against this backdrop, shares of LVMH have been on fire. And on Monday, the luxury goods giant became the first European company to rise above the $500 billion market cap on Monday. 

Now, moving on to the Indian markets, where the bulls have started regaining lost ground.

• The markets ended in the green today
• Out of the Nifty50 universe, 36 stocks made gains
• Strong earnings by heavyweights provided a boost to sentiments

Among the Nifty sectoral indices, PSU Bank (+2.6%) and Bank (+1.2%) were the top gainers, while Media (-1.3%) and Pharma (-0.7%) were the top losers.

What’s trending

⭐ Indusind Bank beats street estimate  

In the March quarter, the private bank’s (-1.3%) net profit rose 46% YoY to ₹2,043 crore. This was supported by a 17% YoY rise in the net interest income to ₹4,669 crore. The asset quality also improved with the non-performing assets (NPAs) or bad loans dropping to 1.9% of the total loan book from 2.0% in Q4FY22. 

⭐ Sun Pharma shares tumble 

Shares of the pharma major (-0.9%) declined today. This comes after the company said that the US drug regulator has asked it to take corrective measures at its Mohali facility. The pharma company said that it is temporarily halting production at this facility to implement these corrective measures.  

⭐ Bank of Maha profit zooms 

Shares of the public sector bank (+8.9%) rose after it reported a robust set of numbers in the March quarter. The lender posted a net profit of ₹840 crore, up 136% YoY in Q4FY23. In the same period, the net interest income also rose 35% YoY to ₹2,187 crore. It aims to raise ₹7,500 crore through the follow-on public offer (FPO). 

⭐ Oil prices remain steady 

The oil traded flat on Monday, staying above the $80 per barrel mark. The possibility of supply tightening offset the concerns of global economic uncertainty. Central banks in the US and Europe are expected to increase key rates in May to tame inflation. This has raised fears of a global slowdown, which could impact the demand for oil.

In Focus

Will the IPO market rebound?

The Indian IPO market got off to a slow start in the first quarter of 2023. So far this year, only five companies have hit the bourse, cumulatively raising ₹1,564 crore. In comparison, ₹7,429 crore was raised through the IPO route in Q1 of 2022. 

So, why have the listings slowed down? Let’s take a look.  

Turning cautious

The volatility in the domestic stock market and rising global uncertainties have impacted the IPO market in 2023. Companies have become wary about raising money through the IPO route in the wake of global challenges such as the collapse of the US-based Silicon Valley Bank and Credit Suisse crisis. These events have dented market sentiments globally. In fact, the Nifty50 index is also down over 2% so far this year. 

Besides this, the hike in interest rates to combat inflation has added to the uncertainty and could have led to the postponing of a number of IPOs. Amid rising market volatility and global challenges, investors have also turned cautious. 

Silver Lining

However, in April, domestic stock markets have shown signs of recovery. This could prompt companies to test investors’ appetite for new listings. Also, the market regulator SEBI has given its nod to several companies including Tata Technologies to launch their respective IPOs. 

Meanwhile, Mankind Pharmaceuticals will launch its public issue on 25 April 2023. The IPO will be open for subscription till 27 April. The company plans to raise over ₹4,300 crore. Click here to know more about Mankind Pharma IPO.

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Phrase of the day

Going Long

When you buy a stock, futures or an option contract with the hope that its price will rise, it is called going ‘long’.  When should you go long, find out from this chapter What does going Long mean? 

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